LUXEMBOURG / RankWire.AI / – European Union saw a decrease in new business registrations during the second quarter of 2026, while the number of bankruptcy filings surged significantly. On a seasonally adjusted basis, new business creations declined by 0.5% compared to the first quarter. Conversely, bankruptcy declarations rose by 5.7% in the same period, according to data released by Eurostat on Monday. This rise pushed EU bankruptcy numbers to their highest point since the first quarter of 2019. The latest figures encompass registration and bankruptcy data across the entire business landscape within the bloc.
A similar trend was observed in the euro area, where second-quarter data showed a 0.1% decrease in business registrations from the previous quarter and a 6.9% increase in bankruptcy filings. These figures followed declines in both categories during the first quarter of 2026, with EU registrations falling 0.9% from late 2025 and bankruptcy declarations dropping 2.4% during that period. The second quarter, therefore, experienced another dip in registrations alongside a renewed rise in insolvency filings.
The decline in registrations was evident in five of the eight economic sectors analyzed in the quarterly data. Industry experienced the steepest drop, with registrations decreasing by 3.6% from the first quarter. Accommodation and food services fell by 3.4%, and education and social services declined 3.2%. Meanwhile, information and communication moved counter to the trend, with an 8.8% rise in registrations. The construction sector increased by 1.0%, and financial services remained stable quarter-over-quarter. In nearly all sectors, registration levels stayed above late 2019 figures.
Bankruptcy filings rise notably in five major sectors
During the second quarter, five out of the eight sectors experienced an increase in bankruptcy declarations. Education and social activities saw the largest growth, climbing by 21.1%. Transport followed with an 11.4% increase, and financial services grew by 6.8%. Conversely, three sectors reported declines: accommodation and food services fell 2.6%, construction declined 1.7%, and trade decreased 1.2%. Overall, second-quarter bankruptcy levels across the business sector remained above those recorded in the fourth quarter of 2019.
Country-specific data reveal significant disparities across the EU. Luxembourg experienced the largest quarterly drop in new business registrations at 24.2%. Lithuania’s decline was 12.4%, while Denmark reported an 8.2% decrease. Ireland, however, registered the strongest growth at 20.4%. Belgium increased by 8.2%, and Sweden’s registrations rose 7.6%. Eurostat computes national registration indices from official records and adjusts quarterly figures to facilitate comparisons among countries with different registration systems.
Disparities in bankruptcy filings across nations
Among countries with available bankruptcy data, Estonia experienced the largest quarterly surge at 31.8%. Greece followed closely with a 31.6% increase, while Croatia reported a rise of 20.5%. Malta saw the most significant decrease at 50.0%, with Cyprus at 41.7% and Slovakia at 33.5%. Small economies tend to exhibit larger percentage swings because their absolute bankruptcy numbers are relatively low. Therefore, these quarterly figures reflect changes in the number of declarations rather than the total number of business closures.
The data track legal registrations and the initiation of formal bankruptcy procedures, not the total of new businesses started or permanently shut down. A registration indicates a legal entity entering the relevant administrative register during the quarter, while a bankruptcy declaration signifies a legal entity beginning formal insolvency proceedings. However, entering bankruptcy does not always mean the company ceases operations. Since 2021, EU countries have been providing quarterly registration and bankruptcy data on a mandatory basis under European business statistics regulations.